APPLICATION OF THE AHP METHOD IN STRATEGIC SUPPLIER SELECTION: INTEGRATION WITH RISK MANAGEMENT IN AN AGRIBUSINESS COMPANY

Abstract

Supplier selection has emerged as a critical strategic capability in response to growing supply chain complexity and the heightened demand for operational resilience and continuity. This study proposes a multi-criteria decision-making framework to evaluate and select suppliers of plastic components for an agribusiness enterprise, integrating the Analytic Hierarchy Process (AHP) with supply chain risk management to enhance procurement efficiency and supply security. The proposed methodology provides a structured evaluation of qualitative and quantitative criteria derived from the literature and calibrated to the organizational context. By incorporating risk-mitigation factors alongside traditional performance dimensions (namely cost, quality, and delivery reliability) the model enables a balanced assessment of competing alternatives. The empirical results demonstrate that coupling AHP with risk analysis fosters more robust, resilient sourcing decisions aligned with the firm’s strategic objectives and the continuity of its logistics operations. Ultimately, this study underscores the effectiveness of AHP as a decision-support tool for supplier evaluation in environments characterized by persistent uncertainty.